TMI Blog1999 (7) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... ome-tax Act, 1961, the Income-tax Appellate Tribunal has referred the following question of law to this court for opinion at the instance of the Revenue: "Whether, on the facts and in the circumstances of the case, the assessees are entitled to exemption under section 54 of the Income-tax Act for the assessment year 1982-83 ?" The material facts giving rise to this reference are as follows : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t for exemption under section 54 of the Act. The assessees appealed to the Commissioner of Income-tax (Appeals). The appeal of the assessees was rejected by the Commissioner (Appeals). However, in further appeal to the Income-tax Appellate Tribunal ("the Tribunal"), the Tribunal accepted the contention of the assessees. Hence, this reference at the instance of the Revenue. There is no dispute ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,375 and was in occupation of the same as its owner since then. He sold the said flat on August 11, 1974, for Rs. 70,000. The assessee claimed exemption under section 54 in respect of capital gains arising from the sale of the said flat for Rs. 70,000 on the ground that he had been occupying the same for a period of two years prior to its sale. The Income-tax Officer did not accept the claim of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mainly for the purposes of his own residence in the two years immediately preceding the date on which the transfer took place. This expression, in the context, in which it appears in section 54, clearly means that the occupation of the assessee must be occupation in the capacity of the owner. It does not contemplate occupation during the period when the property even did not belong to him." In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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